Keeping the roster full is critical for any business that generates revenue by charging membership dues. Not only is attracting new members costly, but attrition can have a domino effect that may ultimately jeopardize future business success. While hardline tactics such as long-term contracts or a complicated cancellation may keep members technically “on the books,” time, effort and a softer retention strategy can be a more effective and long-lasting approach.

Domino Effect

Membership attrition can cripple a business that depends on the size of its roster for its continued existence. The loss of even a few members can make it necessary for a business to decrease operating expenses by offering fewer services to existing members, deferring maintenance or renovation projects or cutting back on staff. Any or all of these steps can increase member dissatisfaction to the point where it causes even greater membership attrition and a resulting further reduction in operating revenue. Development of an effective membership retention plan can help prevent this spiral from occurring.

Rentention Perspective

Membership retention plans approach the issue from a membership lifecycle perspective. This involves engaging members from the start, creating a renewal and membership communication policy and instituting reinstatement programs that reach out to and encourage former members to return. Retention efforts also extend to contributions employees can make and include adhering to standards the business sets for customer service, friendliness and facility maintenance and cleanliness. An enthusiastic greeting when a member enters the facility, close interaction between employees and members and a clean, safe facility can go far in helping to retain members.

Membership Engagement

Bring members in and make them feel like part of a family by staying in close contact with new members, reaching out to existing but absent members with a “We Miss You” postcard or email and by recognizing and involving members in newsletters and promotional events. Continue to woo new members with a phone call within a week or two of joining and an orientation process that answers questions and explains how everything works. After orientation is complete, send out a survey to measure satisfaction and find out how things are going. For all members, consider using newsletters, birthday cards, member appreciation days and member-only events and an occasional “freebie” such as a water bottle or t-shirt as ways to engage and keep members happy.

Fact-Finding Communication

Conduct fact-finding by communicating with both existing and departing members to find out what motivates them to stay or contributed to their decision to leave. Periodic phone calls, emails, surveys and focus groups can help identify positives the business can then emphasize in advertisements and new member recruiting efforts. Fact-finding can also identify aspects from pricing to the condition of the facility to competitors offerings that drive members away. Both positives and negatives need to be analyzed and evaluated and can become a driving force for change.

Renewal and Reinstatement

Start the renewal process at least three months in advance. Send a personalized letter inviting the member to renew, include a listing of membership benefits along with additional reasons why they would want to renew. Modify and keep sending an invitation to renew each month and if the member hasn’t renewed by the renewal date, reach out with a phone call, a gift such as a magnet or a calendar or other incentive such as a discounted renewal rate.

About the Author

Based in Green Bay, Wisc., Jackie Lohrey has been writing professionally since 2009. In addition to writing web content and training manuals for small business clients and nonprofit organizations, including ERA Realtors and the Bay Area Humane Society, Lohrey also works as a finance data analyst for a global business outsourcing company.